INTRODUCTION

Background of the Study In recent times with growing pains of retaining potential and satisfied customers is
the greatest challenges faced by most businesses across the globe. Even more so for a business like Tesco’s’
to sustain its continued stream of income and to make profit has to maintain its highest level of customer
satisfaction by developing products and services that customers want, by making them available to them at
reasonable price (Pride and Ferrell, 2012) as and when required. However, there are various factors that
determine the customers’ level of participation even if the company has done all that it could in terms of its
marketing research, following the guidelines laid within the marketing mix: such as change in technological
advancements, economical conditions in conjunction with other marketers competing within the given
retail business arena (Bob E Hayes, 2008). To such an extent it is important for companies like Tesco’s to
define its strategy and create products or services that customer wants and satisfying their needs, can be
achieved by following a strategic strategy based on surveys, questionnaires, feedback forms and above all
having a club card which has been the key determining factor accurately studying the behavioural patterns
of its customers (Ron Sand Silvia S, 2011). In this dissertation the primary focus rests up the buying patterns
of its customers have changed drastically with the implementation of E-marketing strategy especially in and
around Upton park area in East London. Purpose of the Study Getting in touch with various customers and
employees working at Tesco’s has enabled me take up this research and the statistics that reveals the
changing needs of the customers buying patterns based on the ongoing recession in the UK. This has raised
great concerns with loss of employment and lower income where customers are forced to adopt their life
style and raise awareness of decision patterns based on environmental or ethical considerations based on
green consumption (Moisander, 2007). Added to it the stringent competition faced by its retails traders like
Wal-Mart, ASDA, 99p shops is the closest competitors. However it has been recorded that nearly 35% of the
UK consumers are concerned about environmental issues (Defra, 2006), 50% of them prefer organic food
and only 10% determine the purchasing power unlike 5% being indifferent (Hughner et al., 2007) are those
pursuing their own selfish goal (Chatzidakis et al., 2007). An interesting fact that led me to pursue this
research is that me being a customer of Tesco can shop regularly at four different retailers at a given point
based on the influential factors like family, friends, retailer websites includes price comparisons across the
retailers has changed my behavioural patterns later affirmed by the consumer research conducted by (Jim
Blythe, 2007). Research Questions (s) • • How far E-marketing strategy does affected the customers
decision process in purchasing the products or services from Tesco’s based on their level of satisfaction. By
analysing the retail trends in comparison with Tesco’s competitors like ASDA and Wal-Mart how far has
Tesco been successful in satisfying its customers buying patterns and influence its decision process in
retaining its potential customers and returning customers. • With the evolution of Green products has
Tesco’s been able to influence and bridge the gap between The Customer Loyalty Ladder (Club card) and
CRM retaining existing customers for long term with the changing mood swings and behaviour patterns of
the customers.
Aims and Objective.
The primary aim of this dissertation is to analyse the changing behavioural patterns based on E-marketing
techniques in relation to the services provided by Tesco. Objective • To analyse the factors that determine
the decision process and influence the buying behavioural patterns at Tesco based demographically, age,
employment etc. • Has the impact of technology been influential in bridging the gap between CRM and
Customer Loyalty Ladder based on Kano model of Customer Satisfaction? Company Overview – Tesco Plc
Inc., Upton Park
IT IS A PLC
Tesco is known for its brand retailer helping in providing its customers what they want with the slogan
every little helps saving money during these difficult times (Tesco, 2013). They are known for their brand
loyalty diversified across the globe having and work force nearly 1 million people at various levels,
backgrounds and age groups. However since 2008 there seems to be a decline within the global retail
industry overall sales yet Tesco’s has shown an incredible growth of 13% within the UK and 26% across
internationally (Tesco, 2013) and expanding regularly. Scope and Limitations of the Study One of the
greatest limitations of the dissertation is that the analysis conducted based on the questionnaire and
interview techniques are limited to one particular branch and does not reflect the overall behavioural
patterns of the customers in relations to Tesco’s. Secondly in terms of the comparison with Wal-Mart, ASDA
and 99p Shops a qualitative method has been chosen to determine Tesco’s price point noticing the buying
patterns of the customers having different loyalty margins within these retailers does not give an exact
analysis of the behavioural patterns. Due to lack of time and resources it is hard for a researcher to conduct
interviews and surveys engaging in complex sampling techniques within the given time frame.
LITERATURE REVIEW
Introduction
Service Industry and its importance Whether it is online or offline customers form the back bone of any
organization and in particularly within the E-Marketing platform marketers have analyzed various strategies
and methodologies required in retaining a potential customer called lead while meeting customers
expectation (Gundalch, Bolumole, Eltantawy and Frankel, 2006). In order to optimize the importance of
profitability having right market mix deliverable strategy that requires a balanced integrated approach
between the companies and the customers (Angelina Close, 2008). Achieving such integrity costs time and
extensive research especially in gauging the customer’s attitude towards the organisation and brand
awareness followed by loyalty satisfaction in exchange for their services (Neslin et al., 2006). However with
the growing competition within the retail sector where customers buying patterns and behaviours are
changing at a rapid pace in comparison of the service quality based on feeling (Geffory Paul, 2010). Thus it is
important for an organisation like Tesco’s to measure the existing gap between the CRM and Customer
Loyalty ladder (Tesco, 2012) can be achieved with the aid of servqual an instrument used to measure both
customers and organisational service patters in delivering their products based on performance, quality,
responsiveness, reliability, security, knowing the customers patterns through their purchasing power
especially in today’s economy with a fleeting crowd (Pride and Ferrell, 2012).
Elements of E - Marketing and its services What are the primary elements of E-Marketing services? Smith
and Chaffey (2002) suggest that it is a mode of practising marketing strategies with the aid of digital
technology within which customer satisfaction takes precedence (Lucas, 2002). With the change in
technological development the customer preferences and organisational strategic plans have drastically
changed the way market works. Irrespective of the type of services rendered by the company it is important
that the website has reliable hosting, fast, easy to access and navigate with 24/7 functionality, relevant
information that helps one to make informed decisions about products and services, email capabilities
followed by auto responder messages are essential to build a relationship with the customer database and
above all a secure merchant payment gateway followed by the number of people visiting the website
(Rayport and Jaworski, 2008). Simons et al., (2002) further suggests an element of synergy existing between
the website and the direct mail, physical channels of communication allowing customers to add value
through their feedbacks and comments (Don Schultz, 2005). Impact of E – Marketing upon Customer’s
Satisfaction While taking into account various advertising mediums employed by the organisation her for
our purposes Tesco will not only be able to provide customer satisfaction but also know their customers
behavioural patterns such as: the demographic understanding, age, sex, income, marital status and
occupational standards can be easily analysed. Visitors landing on the website allows Tesco’s to have insight
into the customer itself knowing their personal preferences upon which the direct marketing or email
marketing be based on further leading to campaign effectiveness in brining newer customers while
retaining the existing ones. Other benefits includes knowing their behaviours obtained through life
questionnaires based on attitudes, interests, opinions, emotional buying power including the days on which
these campaigns be run (Richard Gay, Alan C, Rita Esen,2007 ). However E-marketing like any other medium
of advertising has got its own limitations: Due to frequent visitors there has been difficult to validate and
integrate the data obtained through samples, use of pop-ups surveys forces the customer to participate
rather than willingly take up the survey has irritable consequences, due to change in customers emails it is
hard to reach potential customers followed by false responses can be manipulated ( Customer Satisfaction
theories and its functionalities – Types of Customers As mentioned above that the primary focus is on the
customer which is the paramount in any business as the adage goes customer is always right (Tam, 2004). In
order for Tesco’s to provide a quality service in satisfying a customer has to measure the preferences of the
customer and translate into a series of parameters (Grigoroudis and Siskos S., 2010). One can measure
customer satisfaction parameters are directly linked to their jobs, motivational factors, feedbacks, knowing
companies correlation to feedbacks and comments as indicated.
It is essential for any business to be successful has to bridge this gap between the customer and the
organisational expectation, management expectation with the existing gap on the level of quality service
rendered, intended level of service vs unsatisfied quality service experienced by customers (Derek Allan and
Morris W., 2002). In order to achieve the highest level of satisfaction one can apply Marginal resource
model which emphasises on the relocation of the services is better than Derived importance model can be
unreliable (Bryman and Bell, 2003). On the other hand employee motivation is critical for the success of the
organisation in providing quality services to the customer. If the employee is satisfied within the
organisation can influence their productivity, increase high level of participation, reduce absenteeism and
have tremendous influence on the customer which exactly coincides with the six sigma system developed
by Motorola (Salih Kusluvan, 2003) which most companies follow in achieving their desirable profits.
Behavioural patterns Vs purchasing power of the Customers based on Marketing Mix strategy followed by
Tesco Plc Inc.
The key determinant of the Customers behavioural patterns and their purchasing power largely depends
upon the Marketing Mix which Tesco are good at achieving it. As most marketers are aware that the
marketing mix implies 4P’s namely consisting of Product, Price, Promotion and Place (Kotler and Armstrong,
2006). Each element has various elements that are key to a particular customer and does influence their
purchasing power in exchange of profits (Peter and Donnelly, 2007). Product Strategy – defines as
something that the market needs for personal consumption (Ferrell, 2005). Customers buy products based
on various factors with careful consideration and in comparison with the available brands based on price
without foregoing other elements like brand name, size, features of the product, newness and its
profitability to the consumer, packaging Place (Kotler and Armstrong, 2006). Some customers will rely on
the products durability, reliability, product –trial attitude (Kim and Jon, 2007). However with the
development of technology it is becoming even significant that the customer is able to get information on
the product at their finger tips indicates that products do have significant influence on the consumer’s
motives (Uusitalo, O and Maija, R, 2007). Pricing Strategy – Tesco is perceived to have followed this strategy
quite well has kept it prices relatively low in order to attract more customers and to retain the existing ones
especially in a given economy where the customer is more value-based than price itself (Skoras, 2005).
Tesco follows a High-low pricing strategy based on EDLP strategies in providing premium quality products
where quality is assured by purchasing private label products at a lower price. In this way the product
differentiation led by Tesco’s can profit itself by providing and satisfying a customer yet benefiting itself
through low buying concept (Cataluan, Francisco J.R., 2004). Promotional strategy – Promotions and price
strategy goes hand in hand as it greatly influences the customer’s behaviour (Ferle and Steven, 2006) and
turn well especially with an offer followed by bonuses. However research indicates that most in-store
promotions had negative influence on the customers’ than advertising mediums had great sales (Shi, Ka-
Man and Gerald, 2005). Place Strategy – Plays a key role in the distribution of the product to its end users
depending upon its wholesalers and retailers located not only at key strategic places but also be available to
the customers in need and satisfies his wants (Kotler and Armstrong, 2006). The Customer sees stores as a
pre-requisite to build stronger bond with the organisation as an emerging category that satisfies his needs
and desires just around the corner (Feil, 2003).
METHODOLOGY
Introduction
Most businesses consider feedback as the process of integral growth (Griffin and Moorhead, 2011) that
determines the productivity, customer behavioural patterns and ability to use advertisements effectively.
Even more so as the technology develops more and more advanced testing marketing systems have been
placed in order to get the ROI. Considering Ecommerce as becoming more and more customer friendly has
manipulated the consumers buying and decision powers are transforming the way the products and
services are delivered in conjunction with the customer’s choices and preferences (Johnston, Wade and
McClean, 2007). As mentioned earlier that this research is primarily based on quantitative analysis using a
casual and descriptive research. The chosen population has basic understanding of the internet and has
some experience of online buying capabilities. The target population has been given a closed – ended
questionnaire in order to gather an in-depth behavioural pattern of the population selected randomly from
1 to 5 where one is strongly disagree and 5 being strongly agreeing. Based on the simple random method
has been chosen as most of the recipients are readily available within the study environment of the
researcher. Finally the whole research rests upon the quantitative analysis represented in the form of
graphs, diagrams, statistics and interpreting it within the given analytical data (Saunders, Philips and Adrian,
2012). Research Framework Research framework coincides with Literature review based on the simple
sampling method where the participants are free to participate within the research process and free to
withdraw at any given time. No incentives are manipulations are encouraged in line with the ethical aspects
laid within the UWIC’s policies and procedures. This type of sampling method detailed by Bryman and Bell
(2003) insisted that this type of research needs quantitative analysis as this allows the researcher to
investigate the problems in the realistic settings. The primary focus with be on the three major components
as laid within the aims and objectives based on four primary variables like generation gap, lack of
technological awareness, income upon which the decision process rests within the e-marketing arena.
Nearly 100 participants will be given a questionnaire to fill and using the Cronbach’s alpha coefficient for
reliability in validating the research including the time spent on the internet.  
Sampling Method
Overall Approach The participants are the customers of Tesco’s in and around Upton park area upon which
this research is based on. All the participants will be given a copy of the questionnaire after passing through
the HRM consultant at Tesco’s upon approval the participants will be contacted through Email initially and
then gathered later on for 30-45mts in case they have any questions to clarify. The questionnaire is based
on Likert Scale method of rating ranging from 5 being the highest and 1 being the lowest with Strongly
agree, agree, disagree, Strongly disagree, Neutral and Not sure. The participants have to circle the ratings
consisting of three parts: First part is based on the age, gender, access to the internet, Hours of Usage.
Nearly 5 questions, second part is based on the E-marketing strategies employed by Tesco’s is mainly for
the employees of Tesco nearly 10 questions including marketing mix and finally the third part will be based
on the customers purchasing and decision making process 10 questions. The purpose of having a two way
questionnaire between the employees and the customers is to validate what the Tesco’s think about its
customer’s decision process and whether to know E-commerce has changed any aspects of the decision
process within the customers including their expectations. Once the questionnaire is collected will be
placed in the excel data matrix coded using numerical codes displayed through charts. Justifiable reasons
for choosing Qualitative Analysis based on Marketing Mix strategy implied by Tesco Plc Inc.,
Most researchers agree that there isn’t one way of doing research in normal cases it swings from one end to
another between qualitative and quantitative researches depending upon the nature of the research. As
part of the quantitative method includes deductive and positivistic methodology as Marketing Mix is seen as
a process of knowing what the customer wants which is the key in knowing the behavioural factors
influencing the way customers buy products. Data Collection Process – Customer participation Nearly 100
customers are chosen on simple random methods and 10 Employees in answering the questionnaire within
a week’s time after submitting and being approved by the Tesco’s HRM.
Data Analysis
Primary data Analysis is the Customers from the Tesco’s and its Employees who are willing to participate
voluntarily in the research programme and of course are free to leave the questionnaire unfilled or do not
like to participate at any given time.
Secondary data Analysis largely rests upon the periodicals, internet, library, newspaper and other business
journals.
Reliability, Validity and the Limitations of this Research In order to make any research being reliable and
validating the findings of the research one cannot reach the exact or closest proximity which is difficult to
achieve however with consistent observation one will be able to express reliability with correlation (Danie
Mullis, 2004). In context of this dissertation the measurement of scores is based on two tests one from the
side of the employees and the other from the side of the customers are then correlated to get reliability
correlated. However this reliability test though does not reflect entirely the total population of the Tesco’s
within the scale of zero to ten where zero is considered as poor and 10 is quite beyond the measures of
proximity which is hard to achieve. Nevertheless anything close to 10 is considered as reliable and is
acceptable. In this context utilizing the SPSS (Statistical Packages of Social Sciences) in order to calculate the
reliability of the data to be gathered within the Likert-Scale measuring from one to five is quite achievable.
Validity
However it is accepted that there exists a close relationship between reliability and validity as long as the
data is considered as valid based on the accurate data collected and interpreted in the light of qualitative
analysis in the light of the three part questionnaire conducted within the employees of Tesco’s and the data
collected from the customers (Jerry R, Jack N and Stephen J.S., 2011).  
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